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Tembec announces curtailment of Pine Falls newsprint operations

TEMISCAMING, QC, June 2 /CNW Telbec/ - Tembec today announced a temporary
curtailment of operations at its Pine Falls, Manitoba newsprint facility. The
shutdown will be for a minimum of three weeks, commencing June 16th, and is
directly related to the ongoing challenging market conditions for newsprint.
It will affect approximately 300 employees at all levels of the organization
from the newsprint and forestry operations.
"Market and operating conditions remain challenging for North American
newsprint producers, driven by the significant decline in demand for newsprint
and the related need to manage inventory levels and working capital. As a
result, this curtailment is unavoidable," said Chris Black, Executive Vice
President and President, Paper Group.
The curtailment is expected to result in lost production of 11,000 tonnes
of newsprint. Tembec indicated it will continue to monitor market conditions
closely and will adjust operating rates accordingly.
Employees were advised of the Company's decision at meetings held earlier
today.
Tembec is a large, diversified and integrated forest products company
which stands as the global leader in sustainable forest management practices.
With operations principally located in North America and in France, the
Company employs approximately 7,000 people. Tembec's common shares are listed
on the Toronto Stock Exchange under the symbol TMB and warrants under TMB.WT.
Additional information on Tembec is available on its website at
www.tembec.com.
This press release includes "forward-looking statements" within the
meaning of securities laws. Such statements relate to the Company's or
management's objectives, projections, estimates, expectations or
predictions of the future and can be identified by words such as "will",
"anticipate", "estimate", "expect" and "project" or variations of such
words. These statements are based on certain assumptions and analyses
made by the Company in light of its experience and its perception of
future developments. Such statements are subject to a number of risks and
uncertainties, including, but not limited to, changes in foreign exchange
rates, product selling prices, raw material and operating costs and other
factors identified in our periodic filings with securities regulatory
authorities. Many of these risks are beyond the control of the Company
and, therefore, may cause actual actions or results to materially differ
from those expressed or implied herein. The Company disclaims any
intention or obligation to update or revise any forward-looking
statements, whether as a result of new information, future events or
otherwise.